ED 031 208By-Fedrick, Robert J.Creating Automated Information Systems for a Junior College: Implications for Top Level AdminiStrators.Pub Date Dec 68Note-30p.; Seminar paperEDRS Price MF-$0.25 HC-$1.60Descriptors *Adrwlistrator Responsibility, *Administrator Role, *Automation, Computers, *InformationProcessins *Junior Colleges

Based on a review of the successes and failures experiences by industry inintegrating computers into management information systems, the author providedsome suggestions for more successful computer utilization by tunior collegeadministrators in solving increasing administrative problems. Factors related to thesuccessful use of computers in industry and having relevance for colleges included:extensive executive involvement; a positive environment for change created by thechief executive; the application of computer systems to a broad range of problems;and an adequate staff to support the system. Factors inhibiting succeSS in bothindustry and education included: duplication of existing manual systems rather thananalyzing total information needs; an underestimation of computer costs by the .chiefexecutive; and a lack of awareness, and therefore a sympathy, among personnel fortotal organization needs. The success of computer systems at iunior collegesdepends upon administrators: actively participating in the creation and developmentof the system; realistically appraising the cost of the system, including the computeritself and supporting staff; and critically assessing the benefit in terms ofexpenditure. To meet these tasks there is a pressing need for college administratorsto develop a stronger understanding and appreciation of computers, their costs,capabilities, and potentials. (MB)

DOCUMENT RESUME

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U.S. DEPARTMENT OF HEALTH, EDUCATION 8, WELFARE

OFFICE OF EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM THE

PERSON OR ORGANIZATION ORIGINATING IT. POINTS OF VIEW OR OPINIONS

STATED DO NOT NECESSARILY REPRESENT OFFICIAL OFFICE OF EDUCATION

POSITION OR POLICY.

CREATING AUTOMATED INFORMATION SYSTEMS FOR A JUNIOR COLLEGE:

IMPLICATIONS FOR TOP LEVEL ADMINISTRATORS

A Paper

Presented to

Dr. Ralph Prator

Graduate School of Education

University of California, Los Angeles

In Partial Fulfillment

of the Requirement for Education 441-D

Junior College Administration

by

Robert J. Fedrick

December 1968

magmasszammiaL

-gir.74443/

TABLE OF CONTENTS

I. INTRODUCTION . 0 0 o 0 0 0

II. INFORnATION SYSTEMS IN BUSINESS . 0 0 .

III. FACTORS AFFECTING THE SUCCESS OF MANAGEMENTINFORMATION SYSTEMS . * 4 0 0 0 0 0 0

IV. AUTOMATED INFORMATION SYSTEMS IN EDUCATION . 0

V. COSTS AND BENEFITS OF AUTOMATED INFORMATION

BIBLIOGRAPHY

5

SYSTEMS IN EDUCATION .

0 0 0 0 0

ii

1

3

5

13

20

. . . , 0 27

I, INTRODUCTION

There are several severe problems of college administration

which might be elevated by computers and automated information

systems. These problems (as discussed in our first seminar meet-

ing) are:

1. The magnitude and complexity of the top administrativetask,

2. The enormous data housekeeping task.

3, An increasing rate of change in college operations.

4. Important decisions made on the basis of a small amountof data.

For many years leaders in industry have continuously faced these

same problems. With the advent of the computer, industrial lead-

ers hoped to integrate this new tool in a management information

and control system. This paper will investigate the degree of

success and more importantly any problem business has encountered,

or is encounteringlin development.

One of the main purposes for installation of a computer in a

college is to furnish educational administrators with pertinent

data to make better decisions. The desired end result of any in-

formation system is ". . to insure that key decisions are, in

fact; congruous with the objectives of the organisationu (20a5).

Although great strides in education's automated information sys-

tems are beginning to be made; not everyone has been happy with

results so far. This paper will investigate some of the reasons

for disappointing results and come to some conclusion as to how

top level administrators in the junior college can better utilize

the computer in the solution of increasing administrative problems.

1

The specific objectives of this seminar paper will be tog

1. Define the concept of information systems in industry.

2. Determine by a literature review some current managementproblems in industrial development of an informationsystem.

3. Describe some current efforts in creating informationsystems in education.

4. Determine some guidelines for junior college administra-tors in setting up an automated information system; whatthe expectations of the system might be; and what thecost might le.

.1twer'

3

INFORMATION SYSTEMS IN BUSINESS

In industry there is a radical shift away from the intuitive

or "seat of the pants" approach to organization, control, and de-

cision making. Concepts of the system approach such as defined

objectives, standard levels of achievements and constant evalua-

tion of achievement used as feedback are accepted as necessary

ror a corporation to survive. Thcse concepts are also foundations

for the Total Information Systems that businesses see as possible

when the full benefit of the computer is realized and the business

activity and environment is defined (24,28).

Today corporations view their divisions or depa4..tments as a

series of seDarate information networks connecting the require-

ments for information in each decision-making process with the

sources of data and extending throughout all of their business

process. Each separate part of the total network is a separate

information system comprised of a planned method of collecting

data and converting it to useable summaries to be passed on in

the system. The specific activities necessary to create most in-

formation systems are (1) information determination, (2) informa-

tion collection, (3) information prooe3sing, (4) information

analysis, (5) information transmission, and (61 information inter-

pretation (31:4). The promise of the computer is to aid in these

activities.

The idea of viewing a business organization as a network of

information systems has been expounded by teachers of management

for many years. But only within the last ten years has there been

available the methods tools, techniques, and data processing

4

equipment to even attempt a total information system approach to

an organization's data needs.

This Total Information System approach is not an automatic

solution to management decision making and planning by computers

or robots. It is, rather, a management-oriented system conceived

and designed by management as a single, total entity to control

the entire organization, Individual applications are designed

and programmed to meet the needs of a restricted area of the or-

ganization, but with the needs of the whole organization in mind.

When this emproach is taken, it is surprising to see the inter-

connections of separate information systems which were thought to

be entities in themselves bat are really connected by a common

flow of data and a larger common objective (24:Chapter 4)(

in a total automated information system all pertinent data

would be caught up at its source, screened, classified and stored,

and automatically forwarded to those who could use it. Anv user

could obtain any information at anytime. Although no real total

systems have materialized, parts of total systems exits, and much

has been learned by industry from the application of computers to

these subsystems. The educational administrator can perhaps learn

what data processing pitfalls to avoid by investigating industry's

experience in automating information systems. A plirpose of this

seminar paper is to research these industrial findings concerning

computerization for information needs.

5

III. FACTORS AFFECTING THE SUCCESS OF MANAGEMENT

INFORMATION SYSTEMS

There are many outstanding examples of successful computeri-

zation of information systems that could be noted in the manage-

ment literature However: the intent of this paper is not to

describe industrial successes but rather to note the problems and

factors which affected the automation of an information system.

Industry experience with electronic data processing to date

has often indicated these discouraging facts:

1. Clerical cost savings rarely materialized from computerequipment application.

2. Any significant savings realized could largely be iden-tified with improved systems work proceeding or in con-junction with mechanization.

3. Faster report production (mane paper) often did not pro-vide more valuable management inf=mation; it increasedthe problem of management scanning more data to deter-mine significant data. (7:16)

Industry research often was undertaken to determine the reasons

fox the discouraging results. A study by McKinsey and Company,

Inc.: analyzed the operations and organization of twenty-seven

companies from thirteen industries to determine how and why some

companies were able to recover computer start up and operating

costs while others were not able to do so. The twenty-seven coa-

panies studied were large, established users of business computer

equipment. They all began computer system development by 1958 and

at that time they represented fifteen percent of computer instal-

lations in United States industrial and merchandising companies.

After six years of computer operations only nine of the twenty-

seven companies had recovered start up and operating costs. Not

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only did these nine companies recover start up and operating costs,

but they also showed an average annual return of $1.30 per $1.00

invested in computer systems (16).

Three factors were noted in the report as being significant.

The nine successful firms spent an average of ten percent of

capital expenditures on computer systems while the other eighteen

firms spent an average of three percent. The organizational level

of the corporate computer executive Zor the nine top companies

was significantly higher than the remaining eighteen companies as

shown in iigure 1, page 7. And, finally, the nine top firms typ-

ically applied their computer systems to a broad range of key

problems and applications (16).

Arnold Putman, president of the Rath and Strong Management

Consulting Firm, showed a disadvantage of the common approach of

mechanizing existing manual procedures rather than analyzing the

total information needs of the organization.

A number of companies have automated function by function re-sulting in 3 to 10 times as much keypunching and computerprocessing required as in an integrated system. (32:42)

In this article as well as many other researched articles,

executive involvement is noted as being of utmost importance when

installing an automated information system.

Nothing can replace direct involvement of the chief operatingexecutive, particularly in finding out whether the coordina-tion he insists upon at the top is getting through to thebottom. People up and down the line read much into such ex-ecutive interest:

(a) The project must be important.(b) If it is not going correctly, the man who can change it

knows.(c) It's all right to change methods even at the risk of

some mistakes. (3247)

Experience in industry has shown that it is folly to assume

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that personnel of the strong line functions of a business have a

natural tendency to cooperate in the automating of an information

system. In the routine conduct of business, habit performance

patterns are easily developed. But because a successful automated

information system involves the total information needs of the

organization, habit performance patterns of many individuals

throughout the corporation often reauire modification. During

this time of change in an employee's routine, many questions and

insecurities arise:

I. Personally, will I be better off with the success orfailure of the change?

2. Shouldn't my greatest loyalty be to my own function?

3. Shouldn't I get credit for all or part of a modified newproposal?

4. Would my stature look better if that of the others looksworse?

5. In this time of change, shouldn't I get a bigger job?

6. Why should I do the extra work when the new and the oldsystems run in parallel?

7. If I keep the old system accurately, won't the new lookless attractive?

8. If new information highlights problems that I know existso that they become visible to management. (32:42)

Because attitude of the user is such a key factor in the success

of an ,automated information system, the chief executive must create

a positive environment for change. This means actively understand-

ing the process of successful change, an analysis of the particular

situation to see where it fails to meet the requirements, and tak-

ing specific action to overcome the problems (32:44).

The Diebold Group, Inc. found that thirty percent of 2700

corporations survived reported that top management is not

9

responsible for guiding and directing very closely the growth of

automated data processing within the organization (1:7). A rank-

ing of the sources for recommendations for future applications of

data processing is presented below:

Percentage.of Response* Source

52 Data Processing Management31 Line Management27 Top Management9 Management Science Advisors4 All other sources

*More then one source sometimes indicated (1:8)

The Diebold research group indicated in their report that this

was a serious defect in the policy of top management toward auto-

mated data processing:

Growth is too often guided by those whose skills are in im-plementing applications rather than in determining the ra-tionale or need for a particular application. We also foundthat in specific corporate situations, where a rather origi-nal application could have been of great value, it was neverimplemented because recommendations originated with dataprocessinq management unfamiliar and perhaps uninterested inthe total corporation need. (1:8)

Management literature suggests that comparative economic

characteristics of computers and automated information systems are

not widely known by top level management.

While other investment decisions, which fall more into therealm of management's knowledge: are deliberated in greatdetail: investment decisions regarding computers are oftendetermined by a clever salesman of a computer manufacturer,by an inflamatory article in a management journal or bypractices of a competitor (wao may have spent just as littletime in systematic deliberation on the issue). (34:61)

The Diebolt group researched the distribution of total auto-

mated data processing investments among three broad catagories of

expenditures. The explanation of these catagories and the percent

range of investment is presented on the next page:

,

1. Machine rentELJEjmant 40-50%

2. 0 rations (i.e., material, supplies, programma ntenance computer operating staff) 30-40%

3. piEtmal (systems planning, systems analysis,and programming for future applications (1:16) 20-30%

A distribution of total annual data processing budgets is pre-

sented on page ll.

A similar budget profile of data processing users can be seen

by determining the number of computer installations by monthly

rental figures:

Monthly Rental

$ .4 5000$ 5000.410000$10,000-$20000$20,000-$40,000$40,000-$60,000$60,000-$80,000Over $80,000

Number ofInstallations

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20,58615,0365,548-i,543

40635934 (34:69)

Based upon these budget profiles most junior colleges are on

the low end of the dollar expenditure scale. Some pertinent in-

dustry research has shown that generally, smaller data processing

users appear to be much less realistic in their future planning

of expenditures than are the larger users. It has been found that

these smaller users greatly underestimate what their expenditures

will be (24:Appendix A).

The writer feels that the danger of underestimated electronic

data processing expenditures is a problem that a junior college

administrator must aggressively combat. The problem is partially

solved by a knowledge of automated data processing costs. In ad-

dition, industrial research further implies that the thoroughness

and appropriateness of the initial automated information system

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will in the long run result in a lower expenditure. Finally, a

competent data processing staff coupled with extensive top manage-

ment participation in technical development has been found to be

an exceedingly important factor in the establishing of automated

information systems.

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IV, AUTOMATED INFORMATION SYSTEMS IN EDUCATION

Even though education represents the epitome of information

activity, it is lagging behind other sectors of the economy in the

use of electronic data processing technology. Dr. DeRodeff, past

president of the California Educational Data Processing Associa-

tion, suggests that the problem stems from a lack of top adminis-

trative involvement.

The reason for education's lag in electronic data processingis not inherent in the traditional explanation of a "budgetdeficiency," and appears to exist in the lack of high leveladministrative commitment, EDP, by virtue of its centralizedand pervasive services, cannot be assumed under the tradi-tional line and staff organization as it now exists in manyinstances, (19:123-124)

To dater most educational applications tend to duplicate

manual systems and do not reflect the potential of computers in

total information systems. The concept of total information is

enthusiastically discussed and defined in educational literature:

In the total information system concept, the confluence ofall information flow is the electronic data processing centerwhich provides an active communication network for the entireeducational organization. (19:124)

But rather than providing an information network for the "whole°

college, often new computer technology has been absorbed within

an existing administrative unit. Among the major weaknesses of

this traditional approach in education are:

1. The duplication of effort required by those furnishingthe necessary raw data.

2. Unmanageable collections of paper work in each adminis-trative area resulting in the preparation of managementreports so out of date that they provide little help tothe decision makers.

3. Personnel in one division usually have little if anyknowledge of the information needs of any of the otherdivlsions and no one has an adequate conception of the

13

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14

overall information needs of the organization. (19:2)

Various administrative applications of the computer have been

reported in the literature, The most common applications have

been to various purchasing6 accounting, recording, grading, sched-

uling, and planning reports. A relative ranking of educational

applications of computers was studied by the California Associa-

tion of Public School Officials. The study group found enroll-

ment and grade reporting to be the most common computer applica-

tion. These two applications were followed by class rosters,

semester grades, names and addresses, report cards, grade dis-

tributions, failure lists, student locator cards, course tallies,

attendance, temporary student schedules, standarized testing and

class test scoring (5:4.1).

For comparison purposes, presented below is a partial list

of automation applications in industry. These are the ten most

common applications and are presented in rank order:

1. Payroll2, Accounts Receivable3. Billing4. Sales: Statistical Analysis5. General Accounting6. Time Sharing7. Research8, Inventory Control9. Expense Accounting

10. Cost Accounting (17)

The applications appear quite dissimilar in education and industry.

However, reflection on the educational applications indicates that

a type of educational billing is done in enrollment and grade re-

porting, Also, quite naturally, statistical analysis of education-

al output is widely undertaken.

The heavy emphasis on the traditional accounting applications

of.

is =parent in the industry list and noticeably absent in the ed-

ucational list. Speculation on the approp:Tiateness of priorities

might he discussed at this point; but this is an area that indi-

vidual top administrators must decide at each school.

When the Diebolt research grou ine iitia1. reasons for

installing information pxoceissing equipment in business, seventy-

eight percent of all respondents indicated that the initial reason

was to realize savings in operating or a&ministrative costs. More

importantly, sixty-seven percent of the smaller firms take this

viewpoint as opposed to ninety-three percent of the larger organi-

zations. More timely market information and improvement in high

level decision making is a popular reason with twenty-nine percent

of the respondents in the smaller budget group, while only

eighteen percent of the largest budget group indicated that this

was an original and valid basis for installation (1:16).

Dr. Anderson, president oil the Association for Educational

Data System, suggests that many schools have "big computer expec-

tations for small compute:f investment." This is true of many

small-budgeted ccaputer installations which seem to have more

widely diverse initial intentions with less emphasis on straight

costtification. The Diebolt rs.search group after conducting

intensive interviews in corporations made the following pertinent

observation:

. larger corporations were considerably more realistic intheir expectatione of what informationa3rocessing applicationswere really designed to do. There is some indication thatsmaller organizations citing "decision-wmaking" as an originalreason for installation, were simply less cognizant of themagnitude of such an intention. (1:17)

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16

Taking a total information approach and a medium sized com-

puter, some schools have been able to fulfill some combination of

the following objectives:

1. Relieving instructors of clerical taskt related to thepreparation of student records and the scoring of objec-tive tests so that more time can be allotted to givingindividual student assistance.

2. Assisting counselors to program students through the useof grouping techniques and automatic scheduling, therebypermitting more time for student counseling.

3. Providing instructors and students with access to EDPequipment as part of the curriculum devoted to vocationaltraining and the demonstration of a new body of knowl-edge--applied computer science--related to math: physicalscience, social sciences and business administration.Computer-assisted instruction (programed learning) maysomeday exceed record production as a function of auto-mated data processing.

4. Preparing personnel records and accounting applicationsfor the business office.

5. Completing a statistical analysis of student census dataand budget projections for the superintendent or presi-dent and the board of education.

6. Maintaining permanent student record information for thedistrict pupil personnel office or registrar.

7. Providing statistical data used for curriculum researchand evaluation.

8. Preparing reports for the documentation of myriad feder-ally funded projects. (19:125)

The important point in relation to the above list is that although

the computer is a powerful tool for problem solving, it doesn't

solve problems by itself. It takes human knowledge and under-

standing to set up a problem or procedure to the point where a

computer may be useful, and to interpret and use the output of the

system.

The real bottleneck is staff understanding of what can be

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done and how. If this isn't solved, the future promise ofEDP will remain just that. (2:106)

Many computer programs and systems can be formalized, under-

stood, and demonstrated in the educational institution;often, how-

ever, the program is demonstrable only because of one key person

and often this key person is spread awfully thin for the total

work to be done. For this reason something may work in a tech-

nical sense but the development of staff procedures and under-

standing may still be a long way off. A computer system without

an adequate staff is somewhat of a wasted expenditure (2:106).

Because of recent developments in computer equipment, junior

colleges have an option as to the type of computer system organi-

zation it will employ:

Many of the most recent developments in computer technologyhave been directed toward reducing the price of computingpower, to make available to smaller users the services andcapabilities that previously were economically availableonly to large users. The primary form which this effort hastaken has been to achieve a functional fragmentation oflarger systems to permit their capability to be shared bylarge numbers of individual users. (5:2.1)

The traditional organization of junior college computer systems

has been individual unrelated computer facilities for each junior

college. The primary advantages of each junior college having its

own local computer installation include:

1. Individual control of data base and design of outputproducts.

2. Ability to establish and vary priorities.

3. No or minimal needs for communication links. (5:3.1)

The Southern California Junior College Advisory Council, recog-

nizing the capabilities of forthcomihg hardware (computers) and

software (programs), has recommended the establishment of regional

18

centers, formed and operated by a group of cooperating junior col-

leges who would jointly share a large computer system. The pro-

posed advantages of a regional computer center included:

1. Increased system capabilities available from largerequipment (larger data base, greater flexibility, re-liability, and over-all performance).

2. Increased standardization.

3. Comparative information available among colleges.

4. Lower cost for equipment operation and maintenance.'(5:3.1)

This writer feels that the idea of cooperative regional cen-

ters each sharing a large remote computer is an outstanding idea.

All industry signs indicate a great increase in the use of large

shared computers in the future. It is interesting to note that

the most recent articles on computer "time sharing" indicate that

the combination of small individual computers and a large shared

computer may well prove to be the economically optimal solution

(34:70). Computer technology is at a stage now where a small

stand-alone computer can be tied into a large shared computer.

This capability would seem to encompass the advantages of a local

computing center and a larger regional center.

Crucial problems exist which will tend to cause the establish-

ment of regional computer networks to be a slow process.

Dr. Anderson indicates two of these problems:

1. Political problems, such as who controls the facilityand who has what priority for its use.

2. Re-education of educators to create and use data withthe new facility, (4:23)

Not only will the inter school problems have to be resolved, but

top level management must become involved in the establishment ofo. - 4141., ,

19

automated information systems in the junior college. A reasonable

prerequisite to this involvement would be a knowledge of what ex-

pectations of the information system are reasonable. These goals

would then be weighed against realistic system's costs. The final

section of this paper will discuss these goals and costs,

, 9 1,7,71,P , 7o -

V. BENEFITS AND COSTS, OP AUTOMATED INFORMATION

SYSTEMS IN EDUCATION

20

This seminar paper has attempted to show that top management

participation in the creation of an automated information system

is an important factor of success. This participation should

take the form of leadership in the careful planning of objectives

and ways to reach these objectives. One of the most important

areas for top management participation is in the continuing assess-

ment of benefit versus cost. Unfortunately, this area of assess-

ment requires the most technical knowledge and is, therefore, one

Of the usually avoided activities by top level administrators in

education. The benefits of an information system were discussed

in the previous section; now what about costs.

An analysis of the most common computers installed in Cali-

fornia junior colleges is presented below in order to illustrate

costs. Manufacturer, model, and average monthly price (exclusive

of educational discount) is included:

IBM 1401 $ 6,480IBM 1440 4,300IBM 1620 3,000IBM 360/20 3,000IBM 360/30 9,340IBM 360/40 19,550Honeywell H-200 8,400 (12:72-73, 6:31)

A data processing weekly publication called COMPUTERWORLD recent-

ly published a survey of operating costs (salaries paid) compared

to computer rental costs. A summarization of this analysis is

called Table A and is reproduced on page 21, The writer found no

such analysis made separately for educational institutions.

-,

Fk970.77t7 sar

rownouwasugswerommasrasurwargamrss

ITable A:

1,1

1.........-......................................

,- -

RIGKINALTO DATARENTAL

N owEngland

kravo.i.4.4.AvituanAosterrimmuncoumartscasrezttirrommarawrammocualanremoutturwww

COMPMtISON OF TOTAL VALUE OF SALARIESPROCESSING PERSONNEL WITH TOTAL

COST FOR. INSTALLED COMPUTER EQUIPMENT

(ali figures km $ thouonds)

................,Middlt u E. NotthlW. Nort" E, Soutl W. S.outhSothAtlantic Atlantic I Ceritul CentzP.I Contra' 'Central

IIMMII411.0171101.1

PAIDWEEKLY

MountainState.,s

Pacific Natioma11Statft Total

Mg. Dat:A Ptomains 8 373 3 964i

$ 531 51065 5 391--I-

$ I'M $ 183 $ 174 ,

)

$ 63J 4701

, AM. Mgt Data Procesdaz 164 V? 178 454 141 44 76 25 353 173Z

Max. Systems Analysi 300 140 415 j 7Th 243 126 752 133 1 494 3481

r........_re;entor sys'gerrEs Analyc,t 1229 3054 1494 2715 810 378 818 387 2016 12901

Msg. Computer Prognmnth4 276 71'.'s 364 700

1008

247

336

112 248 133 504 3297

St. Computer Ptograrnmex 370 1038 528 156 385 179 869 4869

1

Computez Programmer 495 1330 694 1316 450 214 479 238 911 6127 ,

Otxter 400 1004 594 1071 372 181 363 134 121 4890_.............._____ ..... oro **v..

Surety/we ComputerOperafion3 203 605 314 652 208 1 97 208 98 393 2780

Compui= Operator S19 1680 875 1680 551 240 587 274 1166 7572 1

Tab and Periphen1 Equip.Supervisor 110 351 228 459 126 56 123 64 222 1739

Tape Librarian 92 235 107 224 74 36 88 42 232 1130

[..,,Total 4531 . 12011 6322 12122 3949 1826 4015 1931 8512j:

55,219

Approxinrze Weekly RentalCoat of Conputer Evipmentinstailed,......A...........,-.........m.

1

Ratio of Weekly Salaslesa DP Personnel to WeeklyRental Cost of Computers

4,326 11,588 6,250 14.523

...am. .11..

3,365

1.17

1.973 3.847 2,1051

9,235

.

57,212

0.961.05 1.04

1

1.01 0.83 0.92 1 04

- _.0.92 0.92

. .

_ 4

(29:16)

"

22

Certainly, this would be useful research for it would enable a

eomparison to national averages.

Nevertheless, using the average industrial ratio of data

processing salaries to computer rental costs for the Pacific

States, an estimate of total data processing costs can be pro-

jected by multiplying a junior college's computer rental cost by

a ratio of .92 and adding this amount to the rental cost itself.

Since several junior colleges familiar to the writer have con-

sidered leasing IBM 360/30 computers, this computer will be used

for illustrative purposes.

$9,340 Average monthly rental of an IBM 360/30 computer$8,592 Computer rental x salary ratio of .92

$ 17,932 Average monthly expenditure for computer rental andsupporting salaries.

x 12 Months

$2150184 Average yearly expenditure for computer rental andsalaries

+ $9 000 Miscellaneous operating costs (thwsed upon the Diebolt,Inc findings on percentages of expenditures--computer being fifty percent)

$224,184 Total average expenditures

When using the smaller Diebolt figure of forty percent of the

automation expenditures for equipment, the average total yearly

expenditure would be over a quarter of a million dollars per year.

It is important to remember that the stated figures are

average figures. Research cited in this paper has indicated that

those companies committing an above average capital expenditure

for automation have shown a greater dollar return on investment.

Because a realistic amount of money is budgeted for an automated

information system, obviously doesn't mean that a junior college

is guaranteed to recover its costs. However, along with realistic

krt4r

23

objectives and a competent staff8 the outlook for greater future

benefit versus cost is outstanding.

The writer found the COMPUTERWORLD analysis of salaries to

computer rental costs useful in another way; when the salary ex-

penditures were used to imply a profile of an average organization

on the Pacific Coast:

TitlePercentage of the

...aaaELS2ELE...

Mgr. Data Processing 08%Asst. Mgr. Data Processing 04%Mgr. Systems Analysis 06%Senior Systems Analysis 23%Mgr. Computer Programming 06%Sr. Computer Programmer 10%Computer Programmer 11%Coder 08%Supervisor Computer Operations 04%Computer Operator 14%Tab & Peripheral Equipment

Supervisor 03%Tape Librarian 03%

It is recommended that top level college administrators analyze

their present data processing equipment cost in relation to the

total salaries paid to data processing personnel filling respon-

sibilities of the job classifications listed above. If the ratio

of people to machine cost is relatively Lowe even a highly com-

petent staff may be spread so thin that an effective automated

information system is difficult to establish and even harder to

promulgate.

This research of industrial information system costs hope-

fully has given educators a guideline as to what to expect in

terms of personnel and equipment costs. Much study is required

to further determine an actual data processing cost breakdown in

At; 4

7671nor.

24

junior college information systems. Personnel costs might also

include salaries of instructors involved in using the computer in

their teaching. These salary costs, however, are not tradition-

ally included in a cost analysis of a management information sys-

tem and for that reason have not been considered in the writer's

analysis, Research of actual benefit-cost relationships is very

much needed in the area of junior college information systems,

The writer hopes to further investigate this problem in future

...v.;;Z:. 1,111,51111a .41,111,/ 11,1.1.9.1:

research.

In order for top level administrators to participate in the

setting of realistic objectives for a junior college information

system, it seems necessary to develop a stronger understanding

and appreciation of computers and computer applications. Most

top level educators are confronted with the fact that their pro-

fessional training predates the computer revolution. Even many

younger college administrators have not been exposed to data

processing training, because data processing has only been re-

cently included in college curriculums. John Flynn writes,

"Most educators know at best of computers and not about them."

(15:25)

Arthar B. Kahn in a recent article indicated that corpora-

tion executives and policy makers are often being provided with

computer appreciation courses. These courses do not propose to

make computer experts or programmers out of executives, rather

the intent is to provide an understanding of computer applications

and potentialities, as well as, development of sufficient skills

to facilitate communication with computer experts (15:26). A

.22£22.2«tr.,

,-T,1"..4:4,--likr.,41.7.64if.W,,,Zre,figt,kr;t4;iftapg171Vr411.,?V7T,r...vrei.y,54..21:11'.,47ekFif,-4 OA'

25

similar course is needed for many junior college administrators.

Some computer manufacturers have attempted to provide such courses

for educators. The problem, however, is often a computer expert

aware of the computer's potentialities and unaware of the educa-

tional problems,

Because many California junice: colleges have had several

years experience with data processing equipment and several of

these junior colleges have empleyed data processing directors,

the writer believes that, today, educational administrators have

a clearer idea of what they hope to accomplish with data proces-

sing equipment. Data processing directors also have strong

opinions as to the computer knowledge that would be useful to a

top level administrator. The perceived role of the educational

leader in the establishment of an automated information system

is another topic the writer hopes to pursue in futUre research.

Knowledge of the perceived role by the computer expert and by

the administrator should provide a basis for a computer appre-

ciation course which would include specific information about

best utilizing data processing facilities for specific junior

college educational problems.

The intent of this paper has been to provide some specific

information about automated information systems particularly costs

and the less often publicized problems of development. The prob-

lem of the top level administrator participating in the selection

of realistic objectives for an automated information system can

only be solved by more computer education. And as long as educa-

tors feel impelled to delegate the responsibility of setting new

,

,

,...

,

objectives for information systems: many meaningful innovative

approaches to educational tasks and problems will be delayed or

even worse, never attempted. It is much easier and more effi-

cient time wise for the educator to learn about computer cost,

capabilities, and potentials than it is for the computer expert

to learn about education. Will the administrator accept the

challenge?

26

-74417X5.41.4-4,,Wfarnatii. , " '11 -

§tr-aa,:

27

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4-

61

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